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3 Shares That Beat the Market Today

Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on changes – just in case they’re material to our investing thesis.

The Straits Times Index (SGX: ^STI) has taken a small step backwards as it lost 0.1% to 3,346 points with 14 out of its 30 constituents clocking losses.

Let’s step away from the index for a closer look at some market beaters.

Logistics Holdings Ltd (SGX: 5VI) has jumped by 7.4% to S$0.29 after announcing yesterday the acquisition of a piece of freehold industrial land in Johor, Malaysia. The construction group would be buying the 11.5 hectare plot of land for a sum of around S$15.3 million.

With its purchase, the company “intends to build light and medium industrial factories [on the piece of land] to meet the expected demand of industrial space” there. The land is located “in the precinct” of the Senai Industrial Park, which is a part of Iskandar Malaysia “where important economic activities such as logistics, manufacturing… tourism and cybercity will be located.”

Oil and gas exploration and production outfit Rex International Holding Ltd (SGX: 5WH) also had a big day with its shares up 5.8% to S$0.64. Yesterday night, the company announced that it would be issuing up to 168 million new shares at S$0.57 each to raise up to S$95.76 million.

The estimated net proceeds (after deduction of the relevant expenses) come up to S$93.49 million. Of which, roughly 20% would be used to settle the liabilities of and to inject working capital into a new acquisition, Rex Technology Management Ltd (Rex International had revealed the acquisition only on Tuesday).

Another big chunk – 60% – would be used for the development of the copmany’s drilling activities in Oman, the UAE, and Norway. The remaining 20% would be “used for existing and potential new business opportunities.”

The 168 million new shares to be potentially issued represents 15% of Rex International’s current share count of roughly 1.095 billion. So, that’s quite a significant amount of dilution for the company’s existing shareholders. Let’s hope Rex International would put the capital to good use.

GRP Ltd (SGX: G18) rounds up the trio with a 4.7% gain to S$0.112. The industrial hoses and safety equipment manufacturer had released its full-year results last Friday. For the 12 months ended 30 June 2014, GRP’s top-line had dipped by 2.7% to S$27.1 million with its bottom-line more or less following suit with a 3.8% slide to S$2.76 million.

The company’s slightly weaker results could partly be blamed on weaker demand in the oilfield industry for its Hose and Marine products and services.